Compare and contrast, “globalization of production and globalization of markets”. Discuss how an understanding of “globalization of production and globalization of markets” helps the managers in their decisions.
Production is the part of Globalization in which the different resources and raw material for production are sourced through various countries across the globe to leverage upon the factor of cost-effectiveness. The factors which facilitate Globalization of production are:
- The availability of the excellent quality of raw material in a foreign land.
- The availability of skilled labor at cheaper rates in different countries.
- It helps to develop a dedicate network for the company across the world.
The critical component of the Globalization is the Globalization of the market in which a company present its offering to various demands of the world and should be treated as a single market. The overall branding and the coverage of the company across the globe is facilitated. The mass production conducted by the companies of products can leverage on Globalization of markets to increase the profitability.